Ethereum price analysis: ETH/USD moving towards critical $400, but the breakthrough is unlikely as of yet

  • ETH/USD is virtually unchanged on a daily basis.
  • Further downside may be limited by tech levels clustered on approach to $400.

ETH/USD is trading at $418 at the time of writing, virtually unchanged on a daily basis. The second largest coin with a market value registered at $42.7B has an average daily trading volume settled at $1.8B. The price has recovered from Wednesday's low at $407; however, the upside momentum is limited.

The coin has been sliding for six days, effectively capped by 50-DMA (currently at $465). A sustainable movement below $460 (78.6% Fibo retracement level increased the downside pressure and put $400 in focus. However, a confluence of strong technical levels, located on the approach to this handle, may tame the bearish temper and trigger and upside recovery. Once below $400, there is nothing much in terms of support levels until  $353 (2018 low).

On the upside, the chances to get back above $460 any time soon are slim. Lots of technically important levels clustered on approach to $460 are likely to stop the recovery and lock ETH/USD in a narrow range for a period of consolidation.

ETH/USD, the daily chart


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